Huge positive news for real estate pay just 1% to legalize/whiten all
Huge positive news for real estate pay just 1% to legalize/whiten all real estate in Pakistan amnesty scheme.
Must avail this golden opportunity. Keep close watch of amnesty news.
Amnesty ordinance draft copy. Ordinance not issued yet but to be issued this week.
Download and read proposed full amnesty ordinance here.
https://lahorerealestate.com/pdf/Asset-Declaration-Ordinance-Amnesty-2019-Draft.pdf
You can also watch my last video on amnesty scheme 2019. More breaks will be coming separately in budget ( Details that were explained in this video).
https://youtu.be/6sJOMqlFoHs
Amnesty scheme the real game changer:
For the first time the government is offering domestic real estate amnesty on very lucrative rates.
Since yesterday, the draft of the amnesty scheme is viral over social media, if we believe it to be true, then Pakistan is all set to see the asset class boom in the months to follow.
As per document, the government is offering amnesty on domestic real estate for mere 1%. The severity of this can be explained in following illustration.
Currently, the DC rate for Defence Phase 8, 500yd plot is 1.0mn, FBR rate is 20mn & Fair market value is 60mn. The difference between the FBR rate & market value is 40mn. By paying 1% or 400,000/- on 40mn you can regularise your full 60mn.
Prior to amnesty, if anybody opted to sell his/her property usually bound to reinvest the difference amount in real estate due to black money. Hence the liquidity confined only to real estate market.
Now imagine if we agree to whiten the difference amount and sell in market then the seller get the licence of invest anywhere in the economy or deposit the proceeds with bank.
There will be huge liquidity injection into the system and hence this money can travel into stock market as well. The market currently is short of confidence led by Benami money and AML issues. We. Believe, this amnesty will overcome this issue in a big way.
With this amnesty scheme the real estate activity will be resumed and the institutional money start to flow into real estate due to resolution of black/white ratio elimination. Banks willingness to provide mortgage financing will also be prompted.
In the end, the government wll be the ultimate beneficiary of this amnesty on account of more documentation and mobilisation of savings into productive sector. This will ultimately resolve the productivity gap issue. Hence lower deficits.
Above views are my personal. This is not for any investment advisory.
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